Can "Pressure Coal Lift" Break the Coal Power Impasse?

[Explanation] The National Development and Reform Commission of China announced on November 30 that since December 1, 2011, the average on-grid tariff of coal-fired power plants nationwide has increased by approximately 2.6 cents per kilowatt-hour; the average non-resident electricity price has been raised per kilowatt-hour. 3 cents; trial residents price system; the implementation of temporary intervention measures for coal prices for power generation, the contract coal price limit rose 5%, the market coal price of up to 800 yuan per ton.

This is the second increase in power prices in April and June this year, once again raised the on-grid price and sales price. Not only that, but also with the price adjustment program launched at the same time, "coal price intervention measures", which is in June 2008 NDRC on the implementation of coal prices after the temporary intervention again implemented "intervention."

However, some experts pointed out that in the face of the market pattern of “market coal and planned electricity,” these measures can only be an emergency technique, not a cure-to-root solution. The real solution to the top-cycle cycle of coal-fired electricity is still coal-electricity linkage. Market-led price formation mechanism for coal and electricity.

Before the introduction of this series of measures, 13 power plants located in the central and southern parts of Shanxi Province, a major coal province, have repeatedly “signed letters” and reported to the relevant departments in Shanxi Province that due to “annual losses, the capital chain is facing a fracture and there is no money to buy. "Coal" hopes that the Shanxi provincial government will "emerge emergency measures" in order to resolve the urgent need. The heads of several power plants also went to Beijing collectively to represent some of the power plants in Shanxi Province to propose to the relevant state departments the proposal to adjust the price.

Huaneng Yushe Power Generation Co., Ltd. is one of the representatives of these 13 power plants. The plant is located in Jinzhong City, Shanxi Province, and was put into operation in 1994. In order to eliminate backward production capacity, two 100,000-kilowatt generating units of the power plant have ceased operation. Two 300,000 kilowatt air-cooled units are in operation. According to the person in charge of the power plant, before 2007, Yushe Power Plant had been in a profitable state. Due to the continuous rise in coal prices, it began to lose money in September 2008, and it has accumulated losses of more than 1.1 billion yuan and assets and liabilities of 120%.

[Same period] Xu Gengshen, deputy general manager of Huaneng Jishe Power Generation Co., Ltd., began to lose money in 2008. This year is a full four years, when the loss was due to the sudden marketization of coal at the end of 2007. Standard coal price went to the factory for us to increase more than 300 yuan per ton of coal, then more than 300 yuan, in 2009 after adjusting the price of two, in fact, only really divert the coal price of 100 yuan, (per unit of electricity ) With 4 cents less, there are still 200 yuan after the rise in coal prices. After this year's adjustment, the price of coal is still rising after the adjustment, so this loss will never be made up. Therefore, since we have suffered continuous losses, we have already lost all of our capital from the end of 2009. Now this loss is gradually increasing. Large, then its asset-liability ratio is gradually increasing. The so-called 120% is that the debt ratio is over 100, reaching 120%.

[Explanation] More than a dozen coal-fired power companies in the south-central part of Shanxi Province can be said to be in the same boat, and they are in a similar situation. In 13 power plants submitted to the Shanxi Electric Power Industry Association, the documents mentioned that 13 coal-fired power plants in central and southern Shanxi province had cumulative losses of 3.289 billion yuan from January to October this year, and the average debt ratio has reached 111%.

Under normal circumstances, electricity coal accounts for 80% of the cost of electricity generation. If the coal price does not fall, the electricity price will not be mentioned, and only by means of other means to increase the efficiency of the enterprise will be a drop in the bucket. According to a preliminary calculation of the head of a power plant in Shanxi, from 2008 to October 2011, the unit price of coal for thermal power plants to the factory rose from 340 yuan/ton to more than 800 yuan/ton, which was more than 130%, and the on-grid price rose only. 37.5%.

[In the same period] Xu ugshen, deputy general manager of Huaneng Jishe Power Generation Co., Ltd., probably thinks that the increase in coal price should be 5 times that of the increase in electricity price, which is 5 times of that. This is a 5:1 relationship. The rate of increase in coal prices far exceeds our expectations. Our current electricity prices cannot withstand and accept it. So the so-called inverted bar has been losing money. The figures for the period from January to October this year are cumulative losses for the whole year. 2.36 billion, a fixed loss The price without tax is a loss of 7 points per kilowatt hour. If the tax is included, it should be about 8 points and 6 points. This is the level.

【Explanation】 Coal prices, electricity prices, electricity prices, coal and then rise, several rounds down, the power companies in the downstream have been unable to deal with.

[Same period] Xu Hsin-shin, deputy general manager of Huaneng Yushe Power Generation Co., Ltd. began to increase electricity prices after coal prices rose, but did not think that after the electricity price rose, coal prices rose again. In fact, the power plant did not benefit, and it became coal-fired electricity. The game between them. Which company do you say can lose more than a billion yuan for consecutive years? We expect that by the end of this year it should be possible to make a loss of 1.15 billion yuan. This is a small factory. This is a terrible number. Responsible power, planned electricity prices, and state control, but we have to stand high in our business, and they are all responsible. Even though they are hanging upside down, we are still sending out, and it feels like we are losing more.

【Explanation】 At the same time, due to the rise in interest on loans, financial costs have increased year by year, and Yushen Power Plant is facing a capital chain break and the danger of power plants stopping production.

In the same period, Xu Chuangshen, deputy general manager of Huaneng Qishe Power Generation Co., Ltd., relied solely on the credibility of Huaneng Group last year to borrow money. Because the power generation company is a credit industry with relatively high credit, mortgage is impossible, and the guarantee is If the system is not established, then we have the problem that the capital chain breaks down. By the end of the year, there will be a gap of nearly one billion yuan. In January of next year, another two billion yuan of funds will have a renewed loan problem. The increase is absolutely impossible. Judging from the current situation. So why did we stay to this day, that is to say Huaneng has a relatively high strategic level and has always been an internal support for the operation of our capital capital. We always lend us money, but borrowing money is always at a loss, and we cannot see when it is a time. head.

[Explanation] It is understood that since 2010, similar “joint letters” of more than 10 power plants have become the norm. This year, this part of the power plants reported to the relevant departments through the Shanxi Provincial Power Industry Association that the power plant has been operating for eight times. As much.

【Explanation】 "Pressing coal prices, increase the price of electricity," this time, the measures to control coal and electricity prices can really break the coal-fired power gridlock, and how long will the policy effect last?

Some experts believe that the price adjustment policy takes into account the interests of all parties such as coal, electricity, and end-users. Although it can temporarily ease the contradiction between coal and electricity, its essence is an administratively-oriented short-term behavior.

Pan Yun, vice president of the Academy of Social Sciences of Shanxi Province, said that the coal-power conflict seems to be a game between coal companies and power companies. It is actually a systemic issue involving coal, electricity, transportation, and government. The contradiction between coal and electricity exists. The first is that the price of coal has risen too fast, while the increase in electricity prices has been relatively slow, which has led to the intensification of the contradiction between coal and electricity.

[Same period] Pan Yun, vice president of the Academy of Social Sciences of Shanxi Province Historically speaking, the electric power companies originally used our country's electricity price or coal price to implement the price controlled by the state, which is the national guide price. Well, in the earlier period, the days of power companies were better. Then, after 2004, with the release of coal prices, that is, the increase in the coal price market, power companies are affected by the rise in coal prices. The profitability of an enterprise may be compressed, so power companies are faced with new problems.

【Explanation】 At present, China's coal market has a "dual track system" for contract coal and market coal prices. It is understood that the national supply of contract coal is now 700 million tons, accounting for 40% of all coal for power generation, and its price is cheaper than market coal. 200 yuan -300 yuan. However, thermal coal power plants in Shanxi Province are not included in the national key coal monitoring program and can only be purchased through market channels, and they do not enjoy the benefits of “contract coal”.

【Same period】 Xu Xuan, deputy general manager of Huaneng Qishe Power Generation Co., Ltd. According to our latest information, among the 20 coal-fired power companies that we are currently losing in Shanxi Province, we account for about 300,000 tons of key contract coal. Ten thousand tons is less than 1% for our 20 plants.

【Explanation】 When these power plants were first established, their coal resources were mainly located in the surrounding small coal mines. Small coal mines became important cooperative partners for power plants for a time because of their low prices, flexible production and transportation methods. After the integration of coal resources and mergers and acquisitions of coal mines in Shanxi Province in recent years, these small coal mines are gradually shut down, and these power plants have not formed a strategic cooperative relationship with Shanxi state-owned mines, making the “low coal prices” and “low freight rates” pit advantages Complex existence.

[Same period] Xu Hsin-Shen, deputy general manager of Huaneng Qishe Power Generation Co., Ltd., was at the time when our power plant was designed with pits and electricity. Coal was also a small kiln coal. After coal integration, this was an inevitable result. I did not expect to come so fast.

【Explanation】 to enjoy the "contract coal" low prices, but also lost the "pit" advantage, the use of coal in these power plants can only "accompanying the market," looking around.

In addition, although Shanxi's coal resources are abundant, the proportion of thermal coal in the south-central region of Shanxi Province is relatively small. The coal-producing areas around the power plants in the south of Shanxi Province are coal-free production areas, and the iron transport capacity and flow direction are limited, and coal is mainly transported by roads. Increased coal transportation costs. At the same time, due to the low on-grid electricity price in Shanxi, the tonnage coal price price is lower than that of the neighboring provinces, and the competitiveness in purchasing coal is lower than in neighboring provinces.

[Same period] Deputy General Manager of Huaneng Yushe Co., Ltd. Power Generation Co., Ltd. Xu Zuishen, from Shanxi Province to North and South, is a narrow and long stretch of land. Its coal resources in the south are very scarce. The coal is very tense here. The other is to the south. After the trip, the electricity price in Henan Province was high, and many of them were sold to Henan. In our province, coal was not used.

[Interpretation] It is for these reasons that coal-fired power generation enterprises that were originally in coal-producing provinces have seen a situation where coal-fired power generation has become “more and more losses”.

Pan Yun, vice president of the Shanxi Academy of Social Sciences, said that in addition to the National Development and Reform Commission’s introduction of measures to “press coal prices and increase the price of electricity”, the dilemma of solving Shanxi power plants is also to promote coal-electricity cooperation and coal-power cooperation so that coal companies can absorb the price of coal. factor.

[Same period] Pan Yun, vice president of the Academy of Social Sciences of Shanxi Province, said that from the perspective of market economy means, it can promote the cooperation of some power companies and coal companies, that is, it can even be formed into such a joint stock system, or it can be a group. System, then this is the way to deal with this change in coal prices and electricity prices through this cooperation between coal companies and power companies. In this case, it may be said that within a company, for example, the electricity price is low, and my coal price has come up. We can adjust each other, or that the price of coal has come down. The price of electricity has been adjusted to this mutual adjustment. Judging from the current situation, this coal-power cooperation is an effective solution.

【Explanation】 Pan Yun believes that due to the special circumstances of our country's current economic operation, the room for electricity price increases is not very large, so under the premise of not adjusting the terminal sales price, we can consider raising the electricity price of the power generation enterprises, and the price of power grid The pressure is absorbed by the state subsidies or the power grid itself.

[Same period] Pan Yun, vice president of the Academy of Social Sciences of Shanxi Province, said that for example, we now have more than 5 cents in electricity price, then in fact the power supply price of the power supply companies is 3, 5, 6, so the price of this grid is 1 About 5 hair, this space is not there is room for adjustment. This is an aspect that requires the grid to do this effort and reduce the operating costs of the power grid as much as possible. In this case, we may not adjust the total tariff, but this price for the power company can make a certain profit.

[Explanation] Pan Yun believes that the long-term solution to the true contradiction between coal and electricity is to promote market-oriented reforms and form a pricing mechanism that determines the price of coal, electricity, and freight by market supply and demand.

In the same period, Pan Yun, vice president of the Academy of Social Sciences of Shanxi Province, from the corporate level, we have perfected the system of market economy as far as possible so that they operate in accordance with the laws of market economy. From the macro-control perspective, we combine our requirements with the requirements of a market economy. The overall economic performance of the country We have made our regulatory and control methods more rational and scientific. In that case, I think these problems can be solved fundamentally and over the long term.